Echoing renewed concerns about “large scale lawlessness in the mortgage and foreclosure process,” Americans for Financial Reform has joined a growing chorus of moratorium advocates.
The coalition of over 250 national and state organizations is calling for a temporary moratorium on foreclosures that should be effective immediately.
Lenders and servicers have failed to live up to their legal obligations, and to their obligations under the HAMP program, putting families who want to find solutions on the path to foreclosure.
Lender and servicer actions “have now created overwhelming uncertainty in the system” so they cannot be trusted “to self-certify correction.”
AFR argues that the mortgage industry still has not gotten to the bottom of the problem and a moratorium can offer “a brief step” that will allow for the creation of a new process that requires lenders to follow the law and new mortgage solutions that can help avoid foreclosures and rebuild equity on their homes.
National civil rights groups including the Leadership Conference on Civil and Human Rights, the National Fair Housing Alliance, National Council of La Raza and the Center for Responsible Lending have also called for an immediate moratorium on all home foreclosures. This action has been deemed inappropriate by, among others, the Obama Administration.
